Allison Transmission

ALSN

Market cap $9.58B

Allison Transmission (ALSN) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.

Allison Transmission is rated Hold ahead of Q2 earnings, with inorganic revenue growth from the Dana acquisition masking flat organic performance. Gross margins have declined from 49% to 29% post-acquisition, and operating leverage has worsened, raising concerns about sustainable earnings power. Key focus areas are updates on on-highway and off-highway demand, cost reduction strategies, and the impact of recent oil price volatility.

Allison Transmission (ALSN) is Buy-rated, with near-term earnings risk but strong medium-term demand signals in North America on-highway. Recent robust order growth in Class 4-8 trucks and Classes 5-7, where ALSN has 75% market share, points to a re-acceleration opportunity. Integration of the Dana off-highway acquisition creates short-term margin dilution and inorganic noise, but sets up for cleaner growth in FY27.

NEW YORK, June 30, 2026 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN) will replace Goodyear Tire & Rubber Co. (NASD: GT) in the S&P MidCap 400, and Goodyear Tire & Rubber will replace Stellar Bancorp Inc. (NYSE: STEL) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, July 6. S&P MidCap 400 constituent Prosperity Bancshares Inc. (NYSE: PB) is acquiring Stellar Bancorp in a deal expected to close July 1.

Allison Holdings (ALSN) offers a compelling buying opportunity, trading at a ~43% P/E discount to peers with strong margin and growth prospects. The Off-Highway business acquisition and robust defence market demand drive revenue growth, offsetting temporary On-Highway headwinds from emission regulations. ALSN targets a long-term adjusted EBITDA margin of 25–27%, supported by pricing power, synergy realization, and operational efficiency.

Allison Transmission Holdings is rated a solid 'Buy' due to its transformative $2.7 billion acquisition of Dana's Off-Highway segment. ALSN's combined business offers a global platform with diversified revenue streams across construction, agriculture, industrial, mining, and on-highway markets. Management targets $120 million in synergies and expects 2026 EBITDA of $1.6–$1.7 billion post-synergies, supporting attractive valuation versus peers.

INDIANAPOLIS, June 16, 2026 /PRNewswire/ -- Allison Transmission Holdings, Inc. (NYSE: ALSN) ("Allison" or the "Company"), a global leader in high-performance mobility and work solutions, today announced that on June 11, 2026 it completed an opportunistic repricing of its existing $508 million term loan due March 13, 2031 (the "Term Loan") through an amendment (the "Amendment") to its second amended and restated credit agreement (as amended, the "Credit Agreement"). The Amendment reduced the applicable interest rate margin on the Term Loan by 25 basis points, resulting in an interest rate margin that is either 1.50% per annum for SOFR loans or 0.50% per annum for base rate loans.

The $250 million contract is the single largest tracked defense order in Allison's history INDIANAPOLIS, June 16, 2026 /PRNewswire/ -- Allison Transmission Holdings, Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions, today announced that it has entered into a contract with BAE Systems Hägglunds to supply 4040 MX™ transmissions for the company's CV90 MkIV infantry fighting vehicles. The $250 million agreement, formalized today at the Eurosatory defense exhibition in Paris, includes an option for additional units valued at $50 million.

INDIANAPOLIS, June 9, 2026 /PRNewswire/ -- Allison Transmission Holdings, Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions, today announced that the next generation of tactical trucks for the French Land Forces will be equipped with its Specialty Series™ (SP) fully automatic transmissions. The Allison 4500 SP will be the standard offering on these tactical trucks built on Daimler Truck's Zetros 6x6 chassis.

Allison Transmission (ALSN) reported earnings 30 days ago. What's next for the stock?